LSC bankruptcy leaves print marks on CLOs
CLOs hold $84.3 million of the debt of LSC Communications, which filed for Chapter 11 in the Southern District of New York yesterday.  

ArrowMark liquidates 2014 CLO after selling assets in February
ArrowMark Colorado Holdings has liquidated its CLO named Elevation CLO 2014-3

Beneath the triple C: $31.6 billion of CLO credits feel downgrade pain
March madness took a toll on CLOs as Moody’s and Standard & Poor’s downgraded 4.25% of the portfolios in the US and 1.84% in Europe to triple C or below in just one month (some of these were already triple C rated, only to fall further).

S&P puts 48 triple C-heavy CLOs on negative watch
A spike in loan assets rated triple C as a result of the coronavirus pandemic has led S&P Ratings to put 48 CLO tranches on negative watch

Axa IM cancels Volta dividend due to CLO equity cash flow uncertainty
Axa Investment Managers has has cancelled the 28 April dividend payment to investors in its listed credit fund Volta Finance “in light of the ongoing uncertainty caused by the covid-19 pandemic"

Kayne Anderson CLO trades high as double A investors factor in portfolio health
Demand for high quality mezzanine US CLO paper is picking up, according to trader sources, with the most sought after single As trading at about 425 basis points and the best triple Bs trading at 670bp towards the end of last week

CLO investors should be able to see live secondary trading levels
Olga Chernova of Sancus Capital takes our credit quiz

Miscast as the villains of the 2008 crisis, CDS may prove to be the heroes of 2020
Credit default swaps provide investors with valuable signals on the depth of the coronavirus crisis

The opportunities to build par and spread within a CLO haven’t been this plentiful since 2009
Last year’s CLOs could become the benchmark for manager performance

Structured credit dragged very wide — but CLOs stand to gain
Senior tranches of securitisations widened 220% in less than a month as the coronavirus pandemic has meant an increase in systemic risk — a sharp turnaround from the past few months when idiosyncratic risks were being cited as the main concern for structured credit investors.

They said it: "Start writing the story about banks making margin calls to buyers of CLOs using repo!"
A reader comments on our 25 March report “US fund managers put on leveraged CLO triple A trade with a view to 13% returns”, pointing out that banks were pulling loan TRS lines, but still had the appetite to support leveraged CLO trades.

Empty rooms test CRE CLOs linked to lodging
After a banner year for CRE CLOs, the asset class seems uniquely exposed to the coronavirus — particularly for loan collateral tied to lodging, according to research from Kroll Bond Rating Agency.

We’ve survived before, we can do so again

Credit funds at a glance

A round-up of fundraising and people moves in credit

CLOs at a glance: CLO primary market grinds to a halt
A round-up of CLO performance

Ucits at a glance: Long-short approach lifts Pictet to the top

Fund perfomance: Slowdown for some as pandemic takes hold

Fair Oaks suspends dividends from listed CLO fund citing covid-19 uncertainty
Fair Oaks Capital has suspended dividends on its listed CLO fund “in light of the ongoing uncertainty in economies and markets caused by covid-19 pandemic”, according to an update to investors in the $315 million fund

S&P adds to CLO negative watch list as loan downgrades pick up
Standard & Poor’s has added to the list of tranches in CLOs it has on negative watch as coronavirus concerns mount. This follows the rating agency last week highlighting 22 tranches across 15 US CLOs for having big exposure to downgraded corporate borrowers across impacted industry sectors

Fitch puts European and US CLO notes on negative watch after coronavirus stress test
Fitch Ratings has placed six notes from one European CLO, one US static CLO and one US middle market CLO on negative watch, following coronavirus-related stress tests placed last week 

US loan index rises for second consecutive day
The credit markets felt some reprieve on Thursday as the S&P/LSTA index rose for the second consecutive day, rising by an unprecedented 3.33%

30% of CLOs will breach their 7.5% triple C buckets, says BofA
The number of CLOs tripping their 7.5% buckets for loans rated triple C is set to soar from 8% to around 30%, according to the latest research from Bank of America

S&P puts US CLOs on negative watch including seven failing triple C test
Standard and Poor’s put focus on the recent volatility by placing tranches in 15 US CLOs on a negative watch for having large exposures to energy related sectors such as oil and gas, consumable fuels and commodities. In total, 25 tranches have been affected by this.

CLOs pressured by sub-80 loan index as UBS predicts $550 billion of distress
CLOs were squeezed again today as the coronavirus selloff continues to hammer the loan market and UBS predicted many leveraged loans will become distressed

CLOs process Internap bankruptcy as they hold $212 million
CLOs hold $212 million of the debt of Internap Technologies, which filed for Chapter 11 in the Bankruptcy Court for the Southern District of New York on on Tuesday